Share price - General Discussion, page-1639

I am not sure that many people recognize the true significance of these recent REE price rises for Pensana's ability to leverage future Profit !
ie: Leverage is the ability for a small rise in a commodity price to generate a much larger increase in returns for the Mine,

Looking at the PFS base case, we see Revenue of $3,821 / t_con
And costs of producing that ton of concentrate at $1,323 / t_con
Which implies a gross profit of around $2,500 / t_con

That profit was calculated on Nov 2019 commodity prices,
Since then NdPr has risen around 12.5% ~ which boosts revenue to $4,280/ t_con today and generates a gross Profit of $2,975 /t_con

That equates to an 19% increase in gross Profit projections since the PFS, without any increase in costs !
The fact that most costs are accounted for from the initial levels of revenue means that Price rises above that level are almost pure profit.

If we ever see NdPr rise ~ 60% to say ~ $100,000 /t we would see our revenue increase to $7,642/t and Profit $$6,320/t ie a 153% increase.

And don't laugh at that $100,000/t, in May 2011 Nd was worth $283,000 / t !!!